I am attending the Mike Ferry Super Star Retreat at the MGM Grand in Las Vegas, NV. Approximately 3000 attendees from around the country.
The main subject is selling houses in a recession or bad market. Mike's thoughts are that even thought its a bad market, homes are selling. Homes sell when the seller and buyer agree on a price. Some times it is a sellers market, ie: 2004, 2005 and part of 2006. And some times it is a buyers market...ie; now.
When there are less buyers willing to pay the price of a listed property, the sellers are forced to reduce their prices if they want to sell their property now. Prices have reverted back to the levels in 2003-2004 and may go back to 2002. Why? Well history is part of the answer and the fact that people forget to pay attention to history is another part of the answer. In 2001 and 2002 people were unhappy with the stock market, thus took money form the stock market and put it into real estate. This drove the prices up for three year longer than normal. The real estate market between 1970 to 2000 would level off and take a brake every ten years; ie: 1970, 1980, 1990.
Where do we go from here? If the government does not interfere to the point that the economy does not know how to react..we should come out of the recession in 2011.
What does this mean to the seller of real estate? It means that you lose more money if you need to sell and put it off. The market is declining at the rate of one to two percent depending on the location. There are some areas that due to different circumstances in the area are not declining at this time. It is more important than ever to listen to an experienced Realtor who is selling homes and is up to date on the market.
William S. Wilkinson, P.A., Realtor